1968 Patriot Bond Issuance Act

Issuance of the 1968 Patriot Bond (hereinafter referred to as the Bond) shall be conducted in compliance with the provisions of this Act.

The issuance amount of the Bond is set at NT$600 million, and it shall be issued at full face value in the fiscal year 1968. The issue date shall be prescribed by the Executive Yuan.

The certificates of the Bond shall have five face value denominations: NT$500, NT$1,000, NT$5,000, NT$10,000, and NT$50,000. All certificates shall be in bearer form.

The interest rate of the Bond is 4 percent per annum.

The term for redemption of the Bond shall be twelve years. In the first two years, there shall be only interest payments once every six months from the issue date, and in the subsequent ten years, principal and interest payments shall be made in equal installments once every six months, until the Bond has been redeemed in full in twenty installments.

If a certificate of the Bond is lost, stolen, or destroyed, the payment cannot be stopped for such reasons, nor shall Paragraph 1 (proviso), Article 720; Article 725 and Article 727 of the Civil Code apply.

Funds for redemption and interest payments of the Bond shall be included in the national general budget on an annual basis, and shall be appropriated to the managing bank in advance to be held on deposit in preparation of payment.

The offering and sale, redemption and interest payments of the Bond shall be managed by the Central Bank.

The Bond may be freely traded, pledged, or used as guarantee in official dealings, and may serve as guarantee reserve of financial enterprises.

Interest on the Bond is exempt from income tax.

Regulations governing the offering of the Bond shall be separately prescribed.

This Act shall come into force from the date of promulgation.